Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q2 2024 Earnings Presentation
20 slides from Digital Realty Trust's earnings presentation, Jul 25, 2024
Slide 1: 2Q24 Financial Results
2Q24 FINANCIAL RESULTS July 25, 2024 Global. Connected. Sustainable. The meeting place for companies, technologies and data
Slide 2: Executing on Key Strategic Priorities
Executing on Key Strategic Priorities Positioning for Long-Term Sustainable Growth Second Quarter Highlights 5,000+ 223,000 Customers Cross Connects Strong Leasing Strong Operating Below Target 1 2 3 Quarter Results Leverage 50+ 300+ >2x Metros Data Centers First Half Leasing 100 bps 5.3x vs. Prior
Slide 3: Global Data Center Demand and Supply
Global Data Center Demand and Supply Accelerating Data Center Demand and Limited Supply Leading to Declining Vacancy Rates GROWING GLOBAL DATA CENTER DEMAND (1) DECLINING GLOBAL DATA CENTER VACANCY (3) GLOBAL DATA CENTER IN-PLACE CAPACITY GLOBAL ABSORPTION AND VACANCY in MW in MW 83,600 Chart Title
Slide 4: Offering a Global Data Center Platform
Offering a Global Data Center Platform Capacity in World’s Major Metros to Meet Growing Customer Demand Global Capacity ~2,500 MW in place IT capacity >3,000 MW buildable IT capacity 436 MW under construction 71 MW 72 MW new starts in 2Q delivered in 2Q Note: As of June 30, 2024. 2Q24 Financial Resu
Slide 5: Connected Data Communities
Connected Data Communities Strong 0-1MW + IX Revenue 2Q24 Results 148 Record New Logos $54M 2Q bookings from 0-1MW + Interconnection #3 Highest 0-1MW + IX Bookings in History 2Q24 Financial Results 5
Slide 6: Leading Data Center Partner for Sustainability
Leading Data Center Partner for Sustainability Science-Based Target Commitment to Reduce Global Emissions by 68% by 2030 Renewable Energy Green Buildings Resource Efficiency Green Bonds Leading data center purchaser of More green building certified IT capacity More energy star certifications than an
Slide 7: 2Q24 Financial Results
2Q24 Financial Results 2Q24 Financial Results 7
Slide 8: AI Spurs Demand for Large Capacity Blocks
HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT AI Spurs Demand $ in millions for Large $240 Capacity Blocks $180 Strong and Steady Leasing for 0-1MW + IX $120 • Record 1H24 with $417M Bookings $60 • 4th Consecutive Quarter 0-1MW+IX $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Over $50M 2Q24 B
Slide 9: Record Commencements
Record BACKLOG ROLL-FORWARD (1) $ in millions COMMENCEMENT TIMING (3) $ in millions Commencements Bodes Well for $164M $176M Future Growth $154M $154M $539M $527M $117M $527M • Record $176 Million of $110M Commencements in $232M 2Q24 $203M • Near Record Backlog $478M $478M $478M $177M $165M 1Q24 Bac
Slide 10: Strong Pricing Environment
Strong Pricing 2Q24 RENEWAL SPREADS Environment Renewal Spreads Driven 0-1 MW > 1 MW OTHER (1) TOTAL By 0-1MW Segment RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 3.8% 3.9% 16.3% 4.0% • ~58% of Total Renewals CASH CASH CASH CASH from 0-1MW 3.9% 12.1% 33.0% 7.5% GAAP GA
Slide 11: Revenue Exposure by Currency
EXPOSURE BY REVENUE (1) Revenue Exposure 51% USD 23% EURO 5% GBP 5% SGD 4% ZAR 2% BRL 2% JPY 2% CHF 1% CAD AUD 1% <1% OTHER by Currency FX Slight Headwind in the 1% <1% <1% 5% Second Quarter 2% 23% <1% 51% 2% <1% • Local Operations Funded <1% 5% <1% in Local Currencies act as 2% a Natural Hedge <1%
Slide 12: Matching the Duration of Assets and Liabilities
Matching the Duration of Assets and Liabilities Modest Near-Term Maturities, Well-Laddered Debt Schedule DEBT MATURITY SCHEDULE AS OF JUNE 30, 2024 (1)(2) DEBT PROFILE (U.S. $ in billions) $3.7 4.1 YEARS 2.8% Unsecured $3.3 Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1)(3) 96% Secured Unsecu
Slide 13: Q&A
Q&A Global. Connected. Sustainable. 2Q24 Financial Results 13
Slide 14: Positioned for Long-Term Sustainable Growth
Positioned for Long-Term Sustainable Growth PlatformDIGITAL® is the Choice for AI, Cloud and Hybrid IT Strengthening Innovating Diversifying Customer and and Bolstering Value Integrating Capital Proposition Sources • Strong Leasing Across Product • Unveiled HD Colo 2.0 • Sold 75% interest in Chicago
Slide 15: Appendix
Appendix 2Q24 Financial Results 15
Slide 16: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures The information included in this presentation contains certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures
Slide 17: Forward-Looking Statements
Appendix Forward-Looking Statements This information in this presentation contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes an
Slide 18: Reconciliation of Net Income to FFO
Reconciliation of Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) Non-GAAP Items (in thousands, except per share and unit data) (unaudited) To Their Closest GAAP Three Months Ended June 30, 2024 June 30, 2023 Eq
Slide 19: Reconciliation of FFO to Core FFO
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) To Their Closest GAAP (in thousands, except per share and unit data) (unaudited) Equivalent Three Months Ended June 30, 2024 June 30, 2023 F
Slide 20: Thank you
r Thank you FN DIGITAL Lv REALTY.